Budgets

First published on November 15, 2024 ,  updated on June 27, 2025

The purpose of having financial budgets

Financial budgets are all about financial planning and forecasting. It includes:

  • Revenue Projection: Estimating income based on anticipated client work, billing rates, and staff utilization rates.

  • Expense Planning: Forecasting costs such as salaries, benefits, rent, software, marketing, travel, and other overheads.

  • Profitability Goals: Setting targets for overall company profit margins and profitability by service line, client, or practice area.

  • Cash Flow Management: Predicting cash inflows and outflows to ensure the company has sufficient liquidity to operate.


Where are budgets used

Budgets are used in the following charts and reports:


How to enter budgets

You can create and manage budgets in VOGSY’s back office. Each budget needs the following details:

  • Ledger account

  • Accounting year

  • Department

  • Budget amount

Once created, you can spread the budget amount across the months of the year.


Budgets on revenue ledger accounts must be entered with a minus because revenue accounts have a credit balance.